FLOW's recent decline was not an abrupt attack but an inevitable result of a chain reaction.

Here's what happened. In December last year, Gauntlet, a third-party service provider that supported data for the Flow lending protocol Flow Credit Market, suddenly announced it would cease operations and withdrew the price oracle. This move seemed simple but actually struck at the core of the entire ecosystem.

Why? Lending protocols need real-time information on collateral values, and price oracles are like their eyes. Without this eye, Flow Credit Market cannot continue to operate and had to suspend all lending activities, turning to large-scale liquidations of those exposed to risk.

The subsequent scene is predictable. A large number of FLOW sell orders flooded the market. The problem is that liquidity for FLOW is extremely scarce on certain trading pairs, especially the FLOW/USDC pair on MEXC, where buy orders were instantly eaten through. The price plummeted from nearly $1 to $0.11. It’s important to note that the $0.11 figure was an extreme fluctuation during a volatile moment; the transaction prices on mainstream exchanges were not that exaggerated.

This incident reflects the true state of the Flow ecosystem: excessive reliance on external sources and severe internal liquidity shortages. The exit of a key service provider can trigger a system collapse, and this lesson is heavy.

However, I believe this wave won't be particularly fatal. FLOW should be able to stabilize, and there is still room for a subsequent rebound.